Existence of Nash networks and partner heterogeneity

► In this paper, we pursue the line of research initiated by Haller and Sarangi (2005). ► We examine the existence of equilibrium networks in the presence of partner heterogeneity. ► First, we show through an example that Nash networks do not always exist. ► We then find conditions under which Nash networks always exist. ► These conditions are increasing differences and convexity of the payoff function.